# Clarification on staking rewards? **URL:** \ **Category:** Stake Delegation\ **Created:** [8 July 2020 03:48 UTC](https://forum.cardano.org/t/clarification-on-staking-rewards/35526 "2020-07-08T03:48:09Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![isamu](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/isamu/32/19658_2.png) [@isamu](https://forum.cardano.org/u/isamu)\ **Post date:** [8 July 2020 03:48 UTC](https://forum.cardano.org/t/clarification-on-staking-rewards/35526/1 "2020-07-08T03:48:09Z")
Hi guys. I’ve seen people on YT mention that people who stake can expect an annual return of between 7% and 10%. However, I asked a question on the telegram group the other day about what the staking rewards will be for those of us who chose to delegate our ADA, and someone in the group gave the following answer: > [@](#): > > You will delegate your ada to a stakepool . Rewards are received once the epoch is finished. Epochs are 120 hours (5 days). > > The first time you stake it takes two epochs before you start earning rewards (including the epoch you delegated on) then you are rewarded your first load of rewards at the end of the 3rd epoch. > > After that rewards are distributed after each epoch. > Rewards are compounded yes, so automatically staked. This is where I became confused and replied: > [@](#): > > Wow in other words we can steak and compound every 5 days? Wow that’s crazy! His answer… > [@](#): > > Yes absolutely. I am pretty sure that at some point, possibly not straight away. You can chose which wallet your rewards are paid into. So if you pick a different wallet for your rewards, you may need to initially pick a pool to delegate that wallet to. So can anyone confirm what he is saying? Will we be getting 5% on our ADA every 5 days, and will be able to compound those rewards every 5 days? Or did I misinterpret what he was saying? How does 5% staking rewards every 5 days = 7-10% annualy? ---
**Author:** ![erikd](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/erikd/32/813_2.png) [@erikd](https://forum.cardano.org/u/erikd)\ **Post date:** [8 July 2020 04:59 UTC](https://forum.cardano.org/t/clarification-on-staking-rewards/35526/2 "2020-07-08T04:59:33Z")
The rewards will compound from epoch to epoch but the annualized rewards are still in the 5-10% range. Since an epoch is 5 days, there are about 365 / 5 ~= 73 epoch per year. That means that the per epoch reward will be in the range 0.068% to 0.14% per **epoch**. Where 0.068 ~= 5 / 73 . ---
**Author:** ![isamu](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/isamu/32/19658_2.png) [@isamu](https://forum.cardano.org/u/isamu)\ **Post date:** [8 July 2020 08:40 UTC](https://forum.cardano.org/t/clarification-on-staking-rewards/35526/3 "2020-07-08T08:40:40Z")
Thank you very much for the swift reply Eric d. much appreciated. I understand now, that makes a lot more sense. I would have been worried had it been based on my initial assumption on what was said by the gentleman in the telegram group. Even though he is right, I assumed that it was 5% per epoch. Obviously that would have had me scratching my head, as no crypto in the world can sustain those type of returns. Glad you cleared that up and for the record 5 to 10% annually is still a fantastic return. I have to wonder though…given that each epoch is compounded on top of each other, wouldn’t that mean the actual Ada returns are higher than simply a flat 5%? ---
**Author:** ![RobJF](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/robjf/32/8069_2.png) [@RobJF](https://forum.cardano.org/u/RobJF)\ **Post date:** [8 July 2020 09:33 UTC](https://forum.cardano.org/t/clarification-on-staking-rewards/35526/4 "2020-07-08T09:33:19Z")
I think @erikd was pretty clear that annualized rewards will be 5-10% after compounding is taken into account. ---
**Author:** ![isamu](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/isamu/32/19658_2.png) [@isamu](https://forum.cardano.org/u/isamu)\ **Post date:** [8 July 2020 11:24 UTC](https://forum.cardano.org/t/clarification-on-staking-rewards/35526/5 "2020-07-08T11:24:52Z")
Ok thanks, still very exciting 🙂